In this paper, the author examines the implications of the composition of the Tel Aviv Stock Exchange's different seasoned equity offering (SEO) packages on the market reaction to the SEO announcements. The 2000-2010 analysis demonstrates the significant impact of the SEO package's composition...

The article highlights the common mistakes that seasoned investors should avoid. It explains the problems brought by treating the market as a lucky dip, taking the market down instead of selling, fascination with price over value, and not having an investment plan. The article also notes the...

The article looks at United Arab Emirates-based real estate development firm Emaar Properties as of March 2014, reporting on the company's plans for a secondary stock offering for its Emaar Malls and Retail subsidiary and discussing its credit-rating upgrade and overall financial position.

This paper examines the relation between the market reaction to primary seasoned equity offerings and alternative measures of the profitability of the issuing firm's growth opportunities. While the sample offerings display a positive relation between announcement period prediction errors and...

This paper examines the effect of commercial bank entry on underwriting spreads for IPOs, SEOs, and debt issues using a long time series that spans 30 years, from 1975 to 2004. We find that, on average, commercial banks charge lower spreads of approximately 72 basis points for IPOs, 43 basis...

This paper utilizes an understudied but often utilized aspect of initial public offerings (IPOs), secondary shares, to examine whether the knowledge conditions of firms give rise to agency problems that limit the ability of founders and venture capitalists to sell equity at IPO. In an analysis...

This study investigates the short-term and long-term performance of NYSE-listed American depository receipts (ADRs) from the telecom industry. Early performance results suggest the entire sample of 63 ADRs underperforms the S&P500 on the first day of trading but outperforms the market in the...

We analyze event abnormal returns when returns predict events. In fixed samples, we show that the expected abnormal return is negative and becomes more negative as the holding period increases. Asymptotically, abnormal returns converge to zero provided that the process of the number of events is...

Lockups are agreements made by insiders of stock-issuing firms to abstain from selling shares for a specified period of time after the issue. Brav and Gompers (2003) suggest that lockups are a bonding solution to a moral hazard problem and not a signaling solution to an adverse selection...

The article discusses the paper "Analyst Coverage and the Cost of Raising Equity Capital: Evidence from Underpricing of Seasoned Equity Offerings" by Robert M. Bowen, et al. Bowen and his colleagues report on the relationship of information and cost of capital in the setting of seasoned equity...

An investment factor, long in low-investment stocks and short in high-investment stocks, helps explain the new issues puzzle. Adding the investment factor into standard factor regressions reduces the SEO underperformance by about 75%, the IPO underperformance by 80%, the underperformance...

I examine the impact of corporate transparency on seasoned equity offerings (SEOs) by inspecting the firm characteristics, price performance prior to SEO announcements, market reactions to announcements, and long-term performance post issuance. All results are consistent with the information...

The main purpose of this paper is to examine underwriters' response to issuers' ineffective corporate governance. Given the growing importance of corporate governance for the success of equity offerings, we examine this response using a sample of seasoned equity offerings (SEOs). Previous...

The article presents abstracts in English and French on accounting and finance research topics which include executive compensation committees, management guidance on underpricing seasoned equity offerings (SEOs), and the relationship between governance and accuracy of charitable expense reports.

The main goal of this article is to provide statistical evidence about factors that explain the level of Seasoned Equity Offering (SEO) underpricing. We study a sample of 1,840 Seasoned Equity Offerings (SEO) issued between 2003 and 2011. The most significant contribution of this article is the...

The article reports on an announcement by Countrywide regarding the pricing of its initial public offering at 350p per share. It is noted that the share price quickly climbed to 390p by the end of the first day of trading after opening at 350p. It is mentioned that when Chancellor George Osborne...

All over the world Seasoned Equity Offerings are associated with negative market reaction on the announcement. Different economies have taken different measures in order to reduce the negative effect of these announcements. In China, for this purpose each company in order to be qualified for...

For seasoned equity offerings, the discounting of the offer price from the closing price on the previous day is influenced by the level of asymmetric information surrounding the firm and the offering, as well as compensation to investors willing to purchase new shares. Discounting is important...

The article presents a study which examined the effect of the Sarbanes-Oxley Act (SOX) on the seasoned equity offerings' (SEOs) valuation by Canadian cross-listed firms in the U.S. The study made used of 211 new equity offerings and 41 secondary offerings by Canadian issuers issued from May 1995...

The article reports that a sharp decline in its share price has prompted First California Financial Group Inc. to delay selling over seven million additional shares. During a one-week period shares of First California declined by 31%. The bank had planned to use the proceeds to fund growth,...

The long-term price effect after seasoned equity offerings has been extensively investigated over the last decades as well as from the theoretical and practical point of view. Vast number of studies reveal negative abnormal returns. However, some recent studies do not confirm the...

Abstract: We examine the influence of SEC's Rule 105 on informed trading and the information content of stock prices around an SEO's offer day. We show that constraints on short sales inhibit informed trading and hamper incorporation of information into stock prices for offers whose traders have...

We study right offerings around the world, using a sample of 8,238 rights offers announced during 1995-2008 in 69 countries. Although shareholders prefer having the option to trade rights, issuers deliberately restrict tradability in 38% of the offerings. We argue that firms restrict rights...

Abstract: By integrating the literature on institutional investors with that on seasoned equity offerings (SEOs), this paper investigates the role played by mutual funds around SEO announcements in China. To the extent that shareholdings already held by mutual funds in a firm prior to the firm's...

The seasoned equity offering (SEO) event is characterized by information asymmetry between firms and investors. Insider trading (overt signal) and managed earnings (covert signal) are important inputs to the price of the SEO firm's shares. The interaction between earnings management and insider...

This study examines the behavior of information asymmetry around different announcement dates involved in seasoned equity issue process in China. This study contributes three major findings. Firstly, SEOs announcement effects are found more negative on issuance date as compared to different...

This paper first examines the effects of ownership structures of institutional investors and inside investors on idiosyncratic risks of a firm, and further examines the effects of shareholdings of institutional investors and inside investors on seasoned equity offerings (SEOs) or debt financings...

Regulation Full Disclosure (FD) was adopted mainly to address the selective disclosure of information by publicly traded companies and other issuers. The aim of the rule was to promote full and fair disclosure. The influence of Regulation FD on insider trading along with earnings manipulation of...

An analysis of 4,814 SEOs during 1986-1999 indicates that the average offering of new shares is priced at a discount of 3% from the closing price on the day before the issue. Discounts have risen steadily over time, sharply increasing the indirect costs of issuing seasoned equity. There is...

We examine whether equity issuances initial public offerings (IPOs) and seasoned equity offerings (SEOs) are in part driven by investor sentiment by using equity mutual fund flows to proxy for the rational and/or irrational components of aggregate demand for equity. We find that more firms issue...

The article focuses on the plans of prepaid company Green Dot Corp. in Monrovia, California to generate up to 150 million dollars by selling its stocks through an initial public offering (IPO). Gil Luria, an analyst with Wedbush Securities, believes that the company will reach its goal because...

In this article, we examine the association between ethics and disclosure and the impact of this association on the long-term, post-issue performance of seasoned equity offerings (SEOs). We argue that firms with extensive disclosure are less likely to face information problems, and more likely...

Using a unique broker ID dataset, this paper investigates the trading volume and market share of brokers surrounding Seasoned Equity Offerings (SEOs) in the Australian primary market. It also uses pooled regression analysis to examine the key determinants of the behaviour of affiliated and...

We find weak governance is a primary reason investors react negatively to the announcement of seasoned equity offerings (SEOs). Using a difference-in-differences approach, we find investors worry about nonproductive use of SEO proceeds when external pressure for good governance lifts due to an...

The article focuses on the economic condition in the Far East Asia. According to the article, the market for the initial public offerings (IPO) has downsloped in September 2008 and Anette JÃ¶nsson of Finance Asia states that the IPO has never been priced both in Asia and Pacific regions....

The article provides information on the initial public offerings (IPO) in the Far East Asia. According to the article, the Asian Coast Development has reiterated its proposals to raise its $1 billion in Hong Kong's IPO. Meanwhile, Teo Seng Capital, egg producer in Malaysia, has scheduled its IPO...

This paper examines the impact of the Sarbanes-Oxley Act on the market reaction and underwriting fees of two methods of choice for underwriting seasoned equity offerings: Bought deals and firm commitment, by Canadian firms cross-listed on major U.S. exchanges. After controlling for offer and...

Post-issue stock underperformance is driven, at least in part, by young issuers with contemporary decline in idiosyncratic risk (proxied by expected idiosyncratic volatility) exposure. We show that the SEO long-run underperformance primarily occurs in young issuers. The intuition is that young...